India’s Construction Equipment Market to Reach $14.3 Billion by 2030

Growth Driven by Urbanisation, Housing Projects, and Smart City Initiatives

India’s construction equipment market is projected to nearly double in size over the next five years, according to a report by Pune-based consultancy firm Maximise Market Research (MMR). The market is expected to grow from $7.8 billion in 2023 to $14.3 billion by 2030, recording an average annual growth rate of almost 9%.

Key Highlights from the Report

• Projected Market Size: $14.3 billion by 2030
• Current Market Size: $7.8 billion in 2023
• Annual Growth Rate: Nearly 9% CAGR
• Primary Growth Drivers:
  
  • Smart City Mission
  • Pradhan Mantri Awas Yojana (PMAY)
  • Rapid Urbanisation across India

Policy Push Behind Market Expansion

The report attributes the market surge to ambitious government programs. The Smart City Mission is focused on modernising urban infrastructure, while the Pradhan Mantri Awas Yojana aims to strengthen affordable housing across cities. Both schemes are responses to India’s fast-paced urban growth.

India’s urban population is expected to reach 600 million—approximately 40% of the total population—by 2036, up from 31% in 2011. This shift is directly boosting demand for construction and related equipment.

Companies Poised to Benefit

Global equipment manufacturers like JCB, Komatsu, Caterpillar, and Volvo are expected to see major gains in the Indian market. With infrastructure projects on the rise, these companies are well-positioned to meet the growing need for advanced machinery.

Global Market Trends and Comparisons

While India remains a hotspot for construction equipment, the report also highlights emerging demand in countries like Vietnam and Thailand, where infrastructure development is booming—particularly in the transport and power sectors.

In contrast, mature markets such as Japan and Europe are focusing more on cost-efficiency, technological integration, and market consolidation due to slower demand growth.

Future of Construction Technology

Nations like Singapore, China, and South Korea are steering towards innovation and sustainability.

• Singapore: Emphasis on low-carbon equipment driven by strict sustainability regulations.
• China & South Korea: Focus on AI, autonomous control, and Internet of Things (IoT) to enable cooperative, tech-enabled machinery.

Expert Statement from Maximise Market Research

A spokesperson from MMR noted, “India is at the forefront of construction growth in Asia. The combination of government initiatives, urban expansion, and technological adoption is creating a vibrant market for construction equipment.”

A Promising Future for India’s Infrastructure Sector

With continued policy support and increasing urban demands, India is set to become one of the leading markets for construction equipment globally. The sector’s robust growth outlook signals strong opportunities for global and domestic equipment manufacturers in the coming years.